Thursday, May 28, 2020

White House Briefing Kayleigh McEnany (05-28-20) $10 Billion for Economic Growth, George Floyd and Voting

A number of issues were covered in the White House briefing that include $10 Billion for community business development, Justice for George Floyd, and voting ballots. I think $10 Billion is a good start but that our government may want to create a stimulus that allows for entreprenurial growth and development throughout the entire nation. That means streamlining small business development (I believe they are already streamlining regulations), low/no interest loans from business lenders for good ideas, and other types of pro-growth policies that could encourage our economy to make a major world come back. Such a strategy may pay dividends a few years down the road as some businesses succeed and grow (some may not) in a way that leads to higher job creation and higher wages.

There are studies that support entrepreneurship on economic growth...."for developed countries, generic entrepreneurial activity is related to economic growth, and its promotion is useful to increase the wealth of a country." (Almodovar-Gonzalez, Fernandez-Portillo & Diaz-Casero, 2020). That relationship is stronger in developed countries like the U.S. and when there is a focus more on exploiting opportunities versus being forced by necessity (As seen in poorer countries). Thus supportive loans can lead to exponential growth down the road and is likely a good move for a national policy that can rejuvenate our economy post COVID and make the U.S. an innovative center of international development.

Internal homegrown growth is awesome but so is the creation of an environment for international investment. Invent and build here along with invest here could enhance economic clusters throughout the nation. That in turn leads to stronger labor development, improvement education/skill trades learning, and a pro-export environment that retains attracts wealth and talent. That same investment strategy may do wonders for minority populations to encourage self-made wealth generation and improved standards of living, education, neighborhoods, health, and lifestyle. Each part of the system feeds and enhances the other parts.

Almodovar-Gonzalez, M., Fernandez-Portillo, A. & Diaz-Casero, J. (2020). Entrepreneurial activity and economic growth. A multi-country analysis. European Research on Management and Business Economics, 26 (1).

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